Profits warnings from listed companies in Scotland fell to their lowest in six years in 2017, according to the latest profit warning report from EY.

The final quarter of 2017 also saw the lowest Q4 total – three – for Scotland since 2011, when there was just one. There were 13 profit warnings in total from Scotland in 2017, down from 19 the previous year.

Across the UK as a whole, FTSE companies issued 81 profit warnings in the final quarter of last year, up from 75 in the third quarter and 11 per cent higher than in the fourth quarter of 2016.

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“Scotland's business landscape has been peppered with more political elections in recent years than the rest of the UK,” said Colin Dempster, EY's head of restructuring in Scotland. “Elections always create an element of uncertainty and arguably Scotland's increased exposure to this has helped companies build tolerance to ambiguity caused by external factors.

“Many industry leaders in Scotland have a positive outlook and are focused on seizing opportunities that could be on the horizon.”

Again looking at the UK as a whole, 2017 was a “year of two halves”. EY said both the number of profit warnings and investor reaction increased significantly in the final two quarters, with the median share price drop on the day of the warning rising to just shy of 15 per cent, up from 12 per cent in the first half.

Support services companies issued the most profit warnings, 42, during 2017. EY said contract delays and uncertainties continued, while rising prices exposed weaknesses in contract portfolios and internal controls.

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Other sectors exposed to rising costs and uncertainty were software and computer services with 27 profit warnings; general retailers on 24; and travel and leisure at 22.

“The UK-wide increase in restructurings and profit warnings reflects the pressure building across a significant portion of the UK economy,” Dempster added. “Companies that issue profit warnings are now under greater scrutiny and investors are reacting with less patience, especially in sectors where shareholders view warnings as a sign of deeper issues rather than a one-off event.”